Part l: You are the accountant for a publicly traded manufacturing company. You have just been advised of the acquisition of a new machine. You have received a memo that only gives you the following information:

Grinding Equipment Model: XZ-1-1000 Cost: Estimated residual value 50,000 Physical life 10 years

Required: To be able to properly account for this asset, what additional information do you require?

Part 2: On February 1, 2020, Sudan Corp. purchased a parcel of land for S 300,000 as a factory" site. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below:

Demolition of old building.... 25,000

Architect's fees.... . 35,000

Legal fees for title investigation and purchase contract....: 5,000

Construction costs............ . . 990,000 (Salvaged materials resulting from demolition were sold for S 10,000.) R

equired. At what values should Sudan record the cost of the land and new building, respectively?